Search This Blog

Blogger news

Facebook Adds Nearly 84M Shares To IPO

Facebook filed with the Securities and Exchange Commission Wednesday morning to add 83,818,263 shares to its Friday initial public offering, bringing the total offering to 421,233,615 shares of class-A common stock.

CNBC’s Kate Kelly reported late last night that the move will increase the number of shares being offered by the social network by 25 percent, adding that when combined with the greenshoe overallotment option — in which underwriters can sell up to 15 percent more stock than the offering company originally announced –Facebook’s total take could approach the $20 million mark, although most reports are going with lower estimates. CNET pegged Facebook’s maximum take at $18.4 billion.

However, the number of shares being offered by Facebook itself remains unchanged, at 180 million, plus 3 million to cover overallotments. So where are the additional shares coming from?